Price to Tangible Book Value (PTBV)
A valuation ratio expressing the price of a security compared to its hard, or tangible, book value as reported in the company's balance sheet. The tangible book value number is equal to the company's total book value less the value of any intangible assets. Intangible assets can be such items as patents, intellectual property, goodwill etc. The ratio is calculated as:
Investopedia Says:
In theory, a stock's tangible book value per share represents the amount of money an investor would receive for each share if a company were to cease operations and liquidate all of its assets at the value recorded on the company's accounting books. As a rule of thumb, stocks that trade at higher price to tangible book value ratios have the potential to leave investors with greater share price losses than those that trade at lower ratios, since the tangible book value per share can reasonably be viewed as about the lowest price a stock could realistically be expected to trade at. Related Terms:
Book Value
Book Value Of Equity Per Share - BVPS
Book Value Per Common Share
Intangible Asset
Net Tangible Assets
Price-To-Book Ratio - P/B Ratio
Tangible Asset
Tangible Book Value Per Share - TBVPS |